Factors that influence Samsung’s structure and design

Samsung Case Study
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Factors that influence Samsung’s structure and design..........................................................3
Task 2...............................................................................................................................................6
Management of dynamic processes in Samsung....................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Introduction
This report aims to outline organisational structure of the Samsung Group (herein after
referred to as only Samsung) and the factors that influence and impact its design. Structure of an
organisation is base to its effective performance (Riet, 2016). It is developed out of the values
that company envisions for itself and its path to growth. Samsung is a South Korean
multinational technology conglomerate. Founded in 1938, it is headquartered in Seoul. Initially
started as trading company, it now ventures in consumers electronics, electronic components,
textiles, insurance, securities, etc. also. Influence of company culture in shaping its growth and
evolution are also discussed below.
Task 1
Factors that influence Samsung’s structure and design
Organisational Structure
Samsung in its mission statement aims to contribute to creation of a better global society
by devoting its human resources and technology in creation of superior products and services
(Samsung’s Mission Statement & Vision Statement (An Analysis), 2019). With technology at
heart and innovation as pump to its strategies, organisational structure of Samsung is touted as
facilitating evolution of business from trading firm to multi-products conglomerate. Samsung
Group has a product-type divisional organisational structure (Samsung’s Organizational
Structure & Its Characteristics (An Analysis), 2019). Fully understanding the importance of
organisational structure in improving its growth objectives, it has developed market and
industry- specific strategies, all of which evolve from structure designed and defined by Group
headquarters. In other words, characteristics of the structure of the parent company has been
branched out to subsidiary companies so that same values in the operations can be maintained
throughout. Such defined and refined corporate structure has also been a source to competitive
advantage for the company in developing such innovative strategies that enables to take its
competitors like Apple, Google, Sony, Dell, etc. head-on.
Features of the organisational structure
Structure of the company has three main features which are divisions based on products,
centralisation in hierarchy and geographical groupings:
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